Reed Smith becomes first international law firm to gain ABS license

Regulatory approval enables firm to broaden client services, attract wider pool of top talent and be more agile

主页新闻Reed Smith becomes first international law firm to gain ABS license

LONDON – Global law firm Reed Smith today announced that it has become the first international law firm to convert to an Alternative Business Structure (ABS), after receiving approval from the UK’s Solicitors Regulation Authority.

Unlike the traditionally regulated law firm model, the ABS permits law firms to be managed and/or owned by individuals who are not legally trained, to provide services beyond traditional legal advice and even to receive external investment. This means, in part, that such firms can benefit from talent within their partnership from any field and thereby amass a wider range of commercial acumen and technical expertise to support clients.

The ABS conversion is a change in regulatory status that has no impact on the existing corporate structure of the firm; Reed Smith remains an LLP, although its membership will include a corporate vehicle. It applies to the firm’s UK LLP incorporating partners in the UK, France, Greece, UAE and China. The firm’s single partnership and single global profit pool will remain unaffected.

Tamara Box, Reed Smith’s EME managing partner, said: “We are incredibly proud to be at the forefront of modernisation of big law. As the first international law firm to convert to an ABS, we are future-proofing our business and now have the agility to immediately seize new opportunities – in tech, big data and other specialised consultancy services – that will help us drive our clients’ businesses forward.

“Our clients’ needs have changed. In this era of digital transformation, they are looking for a strategic service provider that can go beyond just providing advice on the black letter law but rather one that can assist in solving any challenge they face to help them achieve their business goals.

“Whether that solution comes from individuals with a legal background or not is irrelevant. We are currently a firm of 3,000 people, and we recognise that the fruits of our labour come from our entire global workforce. We want to ensure that we can retain and attract the very best talent across the board, and the ABS enables this for us.”

The introduction of the Legal Services Act in 2007 first enabled UK law firms to convert to ABS. In the United States, only in Washington, D.C. are individuals without legal qualifications allowed to be law firm partners, but states such as California, Utah and Arizona are pushing for regulatory reform to permit ABS models.

Andrew Jenkinson, Reed Smith’s London office managing partner, commented: “As some states in the US look to replicate the possibilities provided by the ABS model, we are excited to be at the vanguard among international firms in this wave of legal sector innovation.

“Our clients are increasingly asking us to help them future-proof their businesses and plan for the next five to 10 years. It’s our responsibility to do the same for our own business, ensuring we are sufficiently nimble to respond to commercial initiatives as they arise and staffed with the best talent to unlock future solutions and products.”

The conversion to an ABS underlines Reed Smith’s position as a leader in legal innovation. In the past three years, to strengthen its services, the firm has significantly increased its focus on client insight and providing innovative services, having opened innovation hubs in London and Chicago to facilitate collaboration with clients; created Gravity Stack, a suite of new technology to improve management of legal projects; and built Reed Smith Global Solutions, an expanded support structure that is optimising our delivery of legal services.

“Technology is a core focus of the discussions and outputs that we are working alongside clients to deliver – whether it be a product to enhance client service or assisting clients themselves with their own developments,” said Lucy Dillon, the firm’s chief knowledge officer. “As an ABS, we will be in the best position to quickly take advantage of future opportunities.”

About Reed Smith

Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. Our belief is that by delivering smarter and more creative legal services, we will not only enrich our clients’ experiences with us, but also support them in achieving their business goals.

Our long-standing relationships, international outlook, and collaborative structure make us the go-to partner for the speedy resolution of complex disputes, transactions, and regulatory matters.